High LeverageElevated leverage raises interest and refinancing risk and reduces financial flexibility in downturns. High debt amplifies earnings volatility and can constrain capital allocation, making the business more sensitive to rates and cyclical stress over the medium term unless leverage is meaningfully reduced.
Weak Operating Cash ConversionPersistent negative operating and free cash flow despite profits signals poor cash conversion and potential working capital or capex inefficiencies. Over time this undermines self-funded growth, stresses liquidity, and increases reliance on external financing, weakening long-term financial resilience.
Declining EPS TrendNegative EPS growth while revenue rises suggests margin pressure, cost volatility, or non-operating impacts that reduce per-share earnings. Persistent EPS declines can erode investor returns, limit retained earnings for reinvestment, and signal underlying profitability instability.